Enphase Energy Inc (ENPH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.25	5.77	9.06	11.12	10.26
DOH	days	85.89	63.26	40.29	32.81	35.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.25
= 85.89

The days of inventory on hand (DOH) for Enphase Energy Inc have fluctuated over the past five years. In December 2020, the company had an average of 35.58 days of inventory on hand, which decreased slightly to 32.81 days by December 2021. Subsequently, the DOH increased to 40.29 days by December 2022, then significantly rose to 63.26 days by December 2023, and further spiked to 85.89 days by December 2024. This upward trend in the DOH indicates that Enphase Energy Inc may be carrying more inventory relative to its sales, which could potentially lead to higher carrying costs and lower inventory turnover efficiency. It is important for the company to monitor and manage its inventory levels effectively to optimize its working capital and enhance overall operational performance.